Decision to restrict the transport of goods by motorcycle to establishments
In a strategic move aimed at restructuring the logistics sector, the Public Transport Authority has issued new executive regulations governing the transport of goods by motorcycle in the Kingdom of Saudi Arabia. This decisive decision restricts this activity to commercial establishments only, prohibiting individuals from operating independently in this field, with the goal of ensuring the quality of services provided, improving the business environment, and encouraging reliable institutional investments.
The delivery and logistics sector in the Kingdom has developed
Over the past few years, and particularly since the COVID-19 pandemic, Saudi Arabia has witnessed a massive boom in the e-commerce and delivery app sectors. This rapid growth has led to a significant increase in the number of motorcycles on the roads, catering to the growing demand for express delivery services. With this expansion, the need for regulatory intervention to protect consumer rights and ensure the safety of road users has become paramount. This new regulation is part of the objectives of the National Transport and Logistics Strategy, stemming from Saudi Vision 2030, which aims to establish the Kingdom as a global logistics hub based on standards of quality, safety, and environmental sustainability.
The economic and security dimensions of regulating the transport of goods by motorcycle
carries the transport of goods by motorcycle significant economic and security dimensions at both the local and regional levels. Locally, this regulation contributes to eliminating haphazard and informal work, opening the door for companies and institutions to inject new investments and create formal and sustainable job opportunities for Saudi nationals, such as the position of "operations supervisor." From a security and traffic perspective, obligating establishments to adhere to strict standards reduces traffic accidents and ensures that these vehicles are not used to transport hazardous or unauthorized materials. Regionally, with this regulation, the Kingdom is setting a model to be emulated in governing the gig economy and framing it within secure institutional channels.
Licensing requirements and work processes for establishments
The regulations clarify that activities are divided into two main tracks: the first is transporting goods for others, and the second is transporting goods for the establishment itself. A separate license is issued for each activity for a period of one year after fulfilling the requirements, with the establishment given a 90-day grace period to complete the requirements; otherwise, the application is considered void. To ensure quality control, the authority requires establishments operating for others to obtain prior approval within the regulatory sandbox, provide adequate storage facilities for the number of bicycles, and mandate that establishments provide a minimum of one motorized bicycle for their own transport activities. Licenses must also be renewed sixty days before their expiry.
Human resources requirements and safety requirements
Regarding personnel, the regulations stipulate that each motorcycle driver must obtain a "professional driver's card," linked to their driver's license or contractual relationship. Non-Saudi drivers are required to have a suitable profession listed on their residency permit, provide a certificate of good conduct, and pass a professional competency test. Drivers are also required to wear full protective gear, including helmets, gloves, and elbow and knee pads. The regulations establish strict operational obligations, most notably the requirement to appoint a Saudi operational supervisor for every 50 motorcycles used for third-party transportation.
Technical specifications of vehicles and the mechanism for dealing with violations
On the technical and engineering front, the authority set the maximum operational lifespan of a motorcycle at four years from the year of manufacture. It mandated the issuance of an operating permit for each motorcycle, along with third-party liability insurance and a periodic technical inspection certificate. The authority also prohibited hanging goods on motorcycle parts or carrying them in backpacks, emphasizing that they must be placed in a secure, standardized box with appropriate containers for the nature of the goods. It strictly prohibited the transport of any goods containing hazardous materials or the transport of people. The authority concluded its regulations by establishing clear mechanisms for addressing violations, granting those affected the right to appeal within 30 days, while affirming that no measures will be taken to restrict services provided to the violator during the appeal period.
